This is by far the best way to cut out anything that you may come across in Photoshop. I do this almost every single day when cutting out people, shapes, buttons, you name it. It is clearly and by far the best method for your intended results.
I see so many people try to use the magnetic lasso or the polygonal lasso and this is just a mistake. I’m even guilty of trying to shortcut with the lassos when I was a junior designer.
Bottom line, the pen tool will out perform the array of lassos any day of the week. You have control of each point, line and curve. God forbid if you make a mistake with one of the lassos… BOOM, you have to start all over again.
With the pen tool, you can even close the document you’re working on and pick up that exact path at a later time with no consequence.
So the lesson here, PEN TOOL for CUT-OUTS in Photoshop.